Ibec: Let private sector deliver public services
A study published yesterday, Delivering Worldclass Public Services: Working with Business, examines 17 examples of existing services within the Irish public sector that are currently carried out by the private sector, ranging from IT projects, call centres, animal traceability initiatives, as well as vital public safety schemes such as the 112 emergency call answering service and the road safety cameras.
Ibec head of social and innovation policy Tony Donohue, whose unit produced the report, said: “There has been far too little debate about the role the private sector can play in delivering public services. Other countries, many of which are known for the quality of their public services, make far more use of the private sector. While it is clear that there is no one-size-fits-all approach, the potential benefits are significant.”
The report addresses common myths about the outsourcing of public services such as the belief that it leads to job losses, a loss of control of the service and ultimately that the service becomes privatised and more expensive.
Ibec argues that outsourcing could actually create jobs by developing the businesses services sector and allowing the companies involved to develop the ability to tender for more work abroad.
“Essentially, Government can play its part in developing this sector by making a commitment to availing of these services and in turn creating sustainable employment,” the report states.
It also argues that outsourcing is not precursor of privatisation as the services remain in the Government’s hands, only the role of the Government changes.
“Outsourcing is about the State moving from the role of direct operator to one of organiser, regulator and controller. The services remain public,” the report states.
By making a direct comparison between Ireland and England the report says it is more likely that public projects end up costing more than expected than those in the private sector.
“The cost of partnering with external providers may appear more expensive than retaining the service in-house but transparency on the true costs of direct service provision, combined with traditional procurement methods, is required. In the UK, for example, the evidence shows that two-thirds of public sector projects are completed late, over budget or do not deliver the outcomes expected”.
“Outsourcing need not lead to job losses and is not akin to privatisation: public sector control can be maintained and service levels improved. There is considerable expertise in Ireland for delivering external services and there is a need for much more direct engagement with the public sector to explore the possibilities.
“An informed decision can then be taken as to how best to proceed. The net benefit will be more efficient and effective services, ultimately benefiting the taxpayer,” he said.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
